Light, sweet crude futures gained slightly Feb. 12 to hover around $59/bbl on the New York Mercantile Exchange while Brent crude oil for April delivery fell slightly to remain under $63/bbl on the London market.
Benchmark crude oil prices dropped in early Feb. 13 trading after the International Energy Agency said US shale production is rising faster in 2018 than it did during the shale boom of 2011-14 when oil was $100/bbl.
Paris-based IEA, which advises governments and corporations on energy trends, said shale producers have “cut costs dramatically” during the oil-price slump.
Meanwhile, decisions by the Organization of Petroleum Exporting Countries and some major non-OPEC producers to cut output and maintain lower levels through Dec. 31 has helped boost prices. Brent reached $70/bbl in late January.
“All the indicators that suggest continued fast growth in the US are in perfect alignment,” IEA said in its Monthly Oil Market Report.
Energy prices
The March light, sweet crude contract on the New York Mercantile Exchange gained 9¢ on Feb. 12 to settle at $59.29/bbl. The April contract also rose 9¢ to $59.08/bbl.
The NYMEX natural gas price for March settled at a rounded $2.55/MMbtu, down 3¢. The Henry Hub cash gas price fell 5¢ to $2.56/MMbtu.
Ultralow-sulfur diesel for March declined by a rounded 1¢ to a rounded $1.84/gal. The NYMEX reformulated gasoline blendstock for March fell 2¢ to a rounded $1.67/gal.
Brent on London’s ICE for April fell 20¢ to $62.59/bbl. The May contract was down 15¢ to $62.33/bbl. The gas oil contract for March was $555.75/tonne, down $14.75.
OPEC’s basket of crudes was $61.04/bbl on Feb. 12 down 53¢.
Contact Paula Dittrick at [email protected].
